This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

H&E Equipment Services Reports Second Quarter 2012 Results

Forward-Looking Statements

Certain statements in this press release are "forward-looking statements" within the meaning of the federal securities laws. Statements that are not historical facts, including statements about our beliefs and expectations are forward-looking statements. Statements containing the words "may”, "could”, "would”, "should”, "believe”, "expect”, "anticipate”, "plan”, "estimate”, "target”, "project”, "intend" and similar expressions constitute forward-looking statements. Forward-looking statements involve known and unknown risks and uncertainties, which could cause actual results to differ materially from those contained in any forward-looking statement. Such factors include, but are not limited to, the following: (1) general economic conditions and construction and industrial activity in the markets where we operate in North America as well as the depth and duration of the macroeconomic downturn related to decreases in construction and industrial activities, and the impact of conditions of the global credit markets and their effect on construction spending activity and the economy in general; (2) relationships with equipment suppliers; (3) increased maintenance and repair costs as we age our fleet and decreases in our equipments’ residual value; (4) our indebtedness; (5) the risks associated with the expansion of our business; (6) our possible inability to effectively integrate any businesses we acquire; (7) competitive pressures; (8) compliance with laws and regulations, including those relating to environmental matters and corporate governance matters; and (9) other factors discussed in our public filings, including the risk factors included in the Company's most recent Annual Report on Form 10-K and Quarterly Report on Form 10-Q. Investors, potential investors and other readers are urged to consider these factors carefully in evaluating the forward-looking statements and are cautioned not to place undue reliance on such forward-looking statements. Except as required by applicable law, including the securities laws of the United States and the rules and regulations of the SEC, we are under no obligation to publicly update or revise any forward-looking statements after the date of this release.

     

H&E EQUIPMENT SERVICES, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) (Amounts in thousands, except per share amounts)

 

Three Months Ended

Six Months Ended

June 30,

June 30,

2012

 

2011

2012

 

2011

 
Revenues:
Equipment rentals $ 70,504 $ 55,772 $ 130,133 $ 104,250
New equipment sales 64,704 57,913 105,701 87,086
Used equipment sales 23,588 23,066 50,110 38,483
Parts sales 24,725 24,942 48,103 46,519
Service revenues 13,879 13,244 27,179 25,881
Other   11,624     9,398     21,463     17,024  
 
Total revenues 209,024 184,335 382,689 319,243
 
Cost of revenues:
Rental depreciation 24,763 21,507 47,577 42,070
Rental expense 12,253 11,569 23,796 22,308
New equipment sales 57,633 51,118 93,578 77,148
Used equipment sales 16,405 18,058 35,027 29,620
Parts sales 17,805 18,261 34,734 34,101
Service revenues 5,168 5,137 10,292 10,048
Other   10,762     10,890     20,799     21,037  
 
 
Total cost of revenues   144,789     136,540     265,803     236,332  
 
Gross profit 64,235 47,795 116,886 82,911
 
Selling, general, and administrative expenses 41,399 37,546 82,102 75,639
Gain on sales of property and equipment   641     52     964     149  
 
Income from operations 23,477 10,301 35,748 7,421
 
Interest expense (6,973 ) (7,178 ) (13,843 ) (14,385 )
Other income, net   151     185     508     508  
 
 

 

Income (loss) before provision (benefit) for income taxes

16,655 3,308 22,413 (6,456 )
 
Provision (benefit) for income taxes   6,187     619     7,990     (2,672 )
 
Net income (loss) $ 10,468   $ 2,689   $ 14,423   $ (3,784 )
 
NET INCOME (LOSS) PER SHARE
Basic – Net income (loss) per share $ 0.30   $ 0.08   $ 0.41   $ (0.11 )

Basic – Weighted average number of common shares outstanding

  34,838     34,725     34,822     34,713  
 
Diluted – Net income (loss) per share $ 0.30   $ 0.08   $ 0.41   $ (0.11 )

Diluted – Weighted average number of common shares outstanding

  34,964     34,906     34,957     34,713  
       

H&E EQUIPMENT SERVICES, INC. SELECTED BALANCE SHEET DATA (unaudited) (Amounts in thousands)

 

June 30,

December 31,

2012

2011

 
Cash $ 3,692 $ 24,215
Rental equipment, net 518,425 450,877
Total assets 859,140 753,305
 
Total debt (1) 323,790 268,660
Total liabilities 579,718 489,098
Stockholders’ equity 279,422 264,207
Total liabilities and stockholders’ equity $ 859,140 $ 753,305

(1) Total debt consists of the aggregate amounts outstanding on the senior secured credit facility, senior unsecured notes and capital lease obligations.

               

H&E EQUIPMENT SERVICES, INC. UNAUDITED RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (Amounts in thousands)

 

Three Months Ended

Six Months Ended

June 30,

June 30,

2012

2011

2012

2011

 
Net income (loss) $ 10,468 $ 2,689 $ 14,423 $ (3,784 )
Interest expense 6,973 7,178 13,843 14,385
Provision (benefit) for income taxes 6,187 619 7,990 (2,672 )
Depreciation 28,079 24,622 54,115 48,317
Amortization of intangibles   25   123   50   247  
 
EBITDA $ 51,732 $ 35,231 $ 90,421 $ 56,493




5 of 6

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,098.45 +18.88 0.11%
S&P 500 2,003.37 +6.63 0.33%
NASDAQ 4,580.2710 +22.5760 0.50%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs